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Finance Minister Nirmala Sitharaman’s announcement on Saturday to enhance the limit for the interest subvention scheme for Kisan Credit Cards (KCC) from ₹3 lakh to ₹5 lakh will substantially help small and marginal farmers.
SLCM (Sohan Lal Commodity Management), Group CEO Sandeep Sabharwal said that better access to credit, particularly through the expanded reach of KCC, will improve financial liquidity for small and marginal farmers, driving rural entrepreneurship.
“Increasing the KCC loan limit from ₹3 lakh to ₹5 lakh will empower farmers to invest in better-quality seeds, modern irrigation techniques, and advanced farming practices, ultimately improving yield and profitability. A financially stronger farming community directly translates into a more resilient and self-sufficient edible oil sector, creating long-term value for both producers and consumers,” said Anubhav Agarwal, MD and CEO of BN Group.
As of March 2024, the country has 7.75 crore operational KCC accounts with a loan outstanding of ₹9.81 lakh crore. As of 31 March 2024, 1.24 lakh KCC and 44.40 lakh KCC were issued to fisheries and animal husbandry activities, respectively.
Gaurav Grover, CEO, ofi India around Agri sector, said that the 2025 Budget’s emphasis on agriculture as the ‘first engine’ of growth is a decisive step towards strengthening India’s food and agri-sector, and the increase in KCC loan limits will provide much-needed financial support to farmers.
By availing of KCC, farmers are able to access working capital loans at subsidized interest rates, which helps them meet their short-term financial needs for activities. Farmers also have the option to benefit from livestock insurance, personal insurance, asset insurance, and health insurance (wherever the product is available).
The loan is in the form of revolving cash credit; thereby, farmers are able to withdraw and repay funds as needed, based on their cash flow and income generation patterns. By ensuring these financial benefits through institutional sources of credit, the KCC scheme helps farmers invest in better resources, improve productivity, and ultimately increase their income.
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